SBP Plans Complete Currency Note Replacement by Year-End
This was said on Wednesday during a briefing in the Senate Standing Committee on Finance chaired by Senator Saleem Mandviwala.
Ahmed revealed that the State Bank is preparing to introduce new notes made of polymer paper, a process expected to be completed by the end of the year.
We are ready to introduce polymer currency notes,” he said. “In the first phase, a variant will be introduced, which will be presented to the cabinet for approval.”
Allaying concerns about fake notes, the governor noted that the new notes will include advanced security features to prevent counterfeiting. He added that the bank is still assessing the durability, cost and long-term viability of these polymer notes.
Committee member Mohsin Aziz expressed concern over the Rs 5,000 note, saying it leads to corruption and should be stopped. However, Ahmed clarified that no proposal to phase out the Rs 5,000 note is under consideration.
“Suggestions to close it have been made before, but they have not been accepted,” he said. 5,000 rupees will be part of the new currency design.
Ahmed also emphasized that law enforcement agencies are responsible for preventing misuse of currency notes.
Governor State Bank: Govt To Introduce New Currency Notes By December
Governor State Bank Jameel Ahmed said the Government will introduce new currency notes by Decembers.
Briefing Senate Standing Committee On Finance, the Governor State Bank said, the State Bank will internally finalise the prerequisites of introducing new currency notes by end of this year.
He said, the life span of plastic notes is under evaluation as the plastic currency will be tested and issued based on public acceptance.
Federal Minister for Finance and Revenue Muhammad Aurangzeb was also present and provided an update on the IMF loan program.
He indicated that the IMF’s Executive Board is expected to approve the program in September and expressed hope that negotiations are progressing positively.
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August 21, 2024 (MLN): Pakistan plans to unveil currency notes of all denominations next year to improve security features, Bloomberg reported citing central bank governor Jameel Ahmed.
He told a parliamentary body in Islamabad on Wednesday that the State Bank of Pakistan would complete the design work by December and issue the new notes in a phased manner. One of the differences will be the polymer note, Ahmed said.
“It will be launched to test its lifetime as well as security features and if it remains as effective as paper notes in our climatic conditions,” he said.
Ahmed said that the old currency notes would be withdrawn in five years by issuing new ones, adding that there were no plans to scrap any currency notes.
Central banks introduce new series of bank notes every 15 to 20 years to safeguard their integrity and provide them with the latest technological advancements in design and security features, State Bank said in a statement on January 30. Can be synchronized.
According to the details, State Bank Governor Jameel Ahmed told the Senate Standing Committee on Finance that the central bank will soon approve the introduction of new currency notes from the federal cabinet. He said that new currency notes of Rs 10, Rs 20, Rs 50, Rs 100, Rs 500, Rs 1000 and Rs 5000 will be issued by December 2024.
Governor State Bank also briefed the Senate Standing Committee on Finance headed by Senator Farooq H Naik that contrary to rumours, the Rs 5000 note will not be phased out but will be replaced with a new design.
State Bank Governor said that apart from paper currency notes, plastic notes made of polymeric material will also be issued. “Plastic currency will be used in future if it proves to be more durable than paper currency,” added Jameel Ahmed.
During the meeting, Senator Mohsin Aziz proposed to phase out Rs 5000 notes to prevent smuggling, but Governor State Bank rejected his proposal.
